KUCHING: Sarawak United People’s Party (SUPP) has urged the federal government to emulate Sarawak’s approach and explore alternative revenue streams to tackle fiscal challenges.
SUPP Batu Kitang organising secretary Gerald Goh stressed the necessity of reducing dependence on new taxes, a tactic presently adopted by the government.
“The recent service tax increase from 6 per cent to 8 per cent and the introduction of a tax on traditional Chinese medicine by the federal unity government have been met with criticism for further complicating the economic landscape,” Goh said in a statement today.
He highlighted Sarawak’s successful diversification of income sources, particularly through investments in new economy sectors like green energy, digital economy, and oil projects, resulting in a notable revenue of $13.1 billion last year.
Goh urged Putrajaya to rethink its tax strategies, considering challenges such as the depreciating ringgit and persistent inflation.
“The federal government should restructure its tax revenues rather than raising tax rates to increase the country’s revenue. The move to raise the service tax rate is undoubtedly a ‘punishment’ for those who pay taxes according to the rules,” he added.
While Malaysia’s tax rates remain lower compared to neighbouring countries like Singapore and Thailand, Goh criticised the service tax hike as the “wrong medicine for the wrong sickness”.
